SINGAPORE shares ended Monday (Jun 10) lower after stronger-than-expected US jobs figures last Friday hurt market sentiment.
The benchmark Straits Times Index (STI) fell 0.3 per cent or 8.69 points to 3,322.08. Across the broader market, losers beat gainers 239 to 158, with 822 million securities worth S$940.5 million changing hands.
Regional markets were mixed. Japan’s Nikkei 225 gained 0.9 per cent, while Hong Kong’s Hang Seng Index shed 0.6 per cent and South Korea’s Kospi fell 0.8 per cent.
In a research note on Monday, Maybank head of research Singapore Thilan Wickramasinghe said that while a strong US jobs print on Friday dashed hopes of an early Fed interest rate cut, he remains bullish on local markets.
“We have raised the year-end STI target to 3,583 as higher-for-longer interest rates bring Singapore’s defensive and low-gearing characteristics back in favour,” he said.
Wickramasinghe added that the recent first-quarter results season confirms his hypothesis as market earnings accelerated at the fastest pace since the second quarter of last year.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
“Importantly, nearly a third of our coverage companies delivered earnings ahead of forecasts while downgrades fell. This means market expectations are bottoming out, giving greater clarity on the STI’s earnings growth,” he said.
On the STI, Yangzijiang Shipbuilding : BS6 0% was the top performer, rising 2.9 per cent or S$0.07 to S$2.48.
Meanwhile, Hongkong Land : H78 0% came in at the bottom of the table, falling 3.2 per cent or US$0.11 to US$3.31.
The trio of banks were mixed. DBS : D05 0% gained 0.3 per cent or S$0.11 to S$35.63, while UOB : U11 0% slipped 0.1 per cent or S$0.03 to S$30.73 and OCBC : O39 0% fell 0.3 per cent or S$0.04 to S$14.23.
